TMA 1 A LEVEL ECONOMICS

2022OSC270940 – CONNOR OLIVER

Miklor Shyti

SECTION A

1a) current price – initial price ÷ initial price X 100 = N

162880− 134612
∴ ÷ 134612 X 100
134612
= 21 %
Then the PES = %Δ in Q ÷ % Δ in price
21 %
5.4 %
= 3.9 %

b) C – Relatively Price Elastic

% 𝑐h𝑎𝑛𝑔𝑒𝑖𝑛 𝑄
2a) Price elastic of demand
% 𝑐h𝑎𝑛𝑔𝑒𝑖𝑛 𝑃

𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑞𝑢𝑎𝑛𝑖𝑡𝑦 − 𝑖𝑛𝑡𝑖𝑎𝑙𝑞𝑢𝑎𝑛𝑖𝑡𝑦

Quantity demand = X 100
𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦

76000000− 97000000
∴Quantity= X100
76000000
= -21,65%

8.48 −7.20
And price X 100
7.20
= 17.78%

−21.65 %
∴PED=
17.78 %
= 1,217
3) total incidence alludes to the extent of which a 3 party suffers from the implementation of tax.
Sum of price change from S to S1

$ 7.39 -$3.58
= $2.29
Therefore, understanding that each unit is equates thousands
∴$2.29 ×10 000
= $22900

4) 7,39 –3,58
= $3,81

The total revenue for 103114 thousand is as follows

∴3.81 ×10000
=$ 38100

5) it is a short term, shut down point and although it might maintain the current situation of the firm the
possibility of it continuing is 0. The shutdown point is a situation where the blackberry is operational however
revenue or benefits are not received, at this point blackberry is able to earn just enough to cover total variable
costs. believing that BlackBerry may have previously earned revenue to cover standing costs it could continue
to operate under the proposition (having losses of 14 billion), that it may be successful in receiving profits in the
following years and is having the idea that each blackberry sold will deplete the costs gradually the shutdown
zone is between the break-even point and the shutdown point or AR =AVC. where operations are possible, and
AR> AVC. However, blackberry will be making losses as the price is below average total cost.

6a) Prices have risen due to the rise in costs for restoration and energy, including costs of running theaters.
London has also announced record numbers of the amount of people wanting to buy tickets, the ticket prices has
risen by £10 with its initial price being £71.05, its current price being £81.05 further proves the increase. the
supply and demand diagram below, price the original supply has shifted to the left from the right (S to S1). The
initial demand shifts from left to right (D to D1) thus this indicates that there is an increase in demand, we
witness that the new equilibrium has now shifted upward (E to E1). this indicates that a consensus has been
negotiated between ticket sellers and consumers.
price s1
s s

p e1

Pe
e

D1
D
Quantity
Qe Q1

B) Cineworld was pressured to discard three cinemas after its takeover of the picture house chain, additionally
after having issues with identifying new growth opportunities in the company’s home market, forced the firm to
seek international expansion opportunities outside its own borders. CC1 controls and 100 multiplex cinemas
with in seven overseas markets through a £900 million merge with European members, this partnership will
allow Cineworld to circumvent the downturn in the market, evidence revealing that Uk and Ireland box office
takings in 2013 fell by 1 %to £ 1.17 billion , thus proves the Cineworld could face serious revenue issues and
may cause Cineworld to shut down in later years if they did not merge and expand with CCI, as well as owning
shares in relative standing CC1 constituents to name a few: Romania , Bulgaria Slovakia , Israel, Poland, Czech
Republic, Hungary, this however may cause a decrease amount of profits as the currency differences are
extensive compared to the pound. This international relationship, will increase brand/production expansion and
popularity thus increasing the number of customers in relative countries. With Odeon UCI and Canadian –
owned business being in other foreign countries proves competition followed the market trends. Nevertheless cc
has also announced that the acquisition may lead to a decrease in competition in the cinema market in
Aberdeen, Bury St Edmunds and Cambridge where Cineworld and Picture house face limited treat

C) Market failure occurs when the market/ firm in the market are un able to reach the requires set by market, in
that sense unable to produce goods and services inefficiently , lack of education can take root from lack of
communication with market as well as lack of resources to teach , sugar, not known to many is one of the major
factors contributing to human health issues, sugar if not taken in moderately could lead to obesity , the costs for
obesity is already 3% of gross domestic product, cardiovascular disease higher blood pressure, inflammation,
weight gain, diabetes, and fatty liver disease as well as a great decline in the function of the mind. Is some case
sugar has seen to give a rapid movement like a machine that is fully charged however it depletes at the same
speed, this will affect the market as this works at a high productive rate in small period of time, this will affect
the market in the long run.

Sugar is also extremely addictive therefore many may choose to rather have sugar related foods then the correct
and balanced diet for their health, with this it will cause a high demand for a demerit good which is both a
negative benefit for the market and its occupants. This may also force market to have a budget that incorporates
sick employees; thus, the market could be at risk as employee may not work at their fullest potential, the
consecutive visits to the medical centers requires workers to take days off thus back tracking the production of
the market and therefore causing the market to fail. The Uk is known to house a great amount of in house and
international students, thus the lack of awareness off sugar may infringe on the capabilities of aspiring students
there for decreasing the level of ethic and work with then work force. Once something comes habitual this will
affect how consumers spend, as people won't care about the price only about the product. This can subsequently
lead to the fall in HDI- human development index of the country , international can provoke the rumor that the
government neglects its citizens , not knowing how sugar can influence your life thus the impact on a market